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Chapter 07 - Current Asset Management
75. Some of the services provided around the clock by SWIFT are
76. International cash management is more complex than domestic based cash management
because of
77. SWIFT's implementation of the "smart card" is expected to
Chapter 07 - Current Asset Management
78. International cash management systems are more complex than domestic cash
management systems because
79. International cash management systems are more complex than domestic cash
management systems because of
80. The corporate sweep account is an account
Chapter 07 - Current Asset Management
81. A multinational company may prefer to hold sizeable cash balances in one currency rather
than another because
82. The problem in stretching out the maturity of marketable securities is that
83. Which of the following is not a factor influencing the selection of a marketable security?
Chapter 07 - Current Asset Management
84. Probably the safest and most marketable instrument for short-term investment is
85. Which of the following securities trades on a discount basis?
86. A firm that wishes to minimize risk when investing idle cash would be least likely to buy
87. A banker's acceptance
Chapter 07 - Current Asset Management
88. Eurodollar certificate of deposits
89. In comparison to securities issued by the U.S. Treasury, securities issued by U.S.
government agencies like the Federal Land Bank
90. Treasury Inflation Protected Securities (TIPS)
Chapter 07 - Current Asset Management
91. Which of the following securities represents an unsecured promissory note issued by a
corporation?
92. Eurodollars
93. Money market funds are
Chapter 07 - Current Asset Management
94. Characteristics of a money market mutual fund include
95. Characteristics of a money market deposit account include
96. Which of the following are characteristics of money market investments?
Chapter 07 - Current Asset Management
97. Money market funds
98. The three primary policy variables to consider when extending credit include all of the
following except
99. The most subjective and also significant segment of the 5 C's of credit for giving final
approval is
Chapter 07 - Current Asset Management
100. Dun & Bradstreet is known for providing
101. When developing a credit scoring report, many variables would be considered. Which of
the following best represents the major factors Dun & Bradstreet would examine?
102. Which of the following is not a valid quantitative measure for accounts receivable
collection policies?
Chapter 07 - Current Asset Management
103. Variables important to credit scoring models include
104. Inventory is usually divided into three basic categories except
105. Companies that are mostly influenced by seasonal sales have to make a choice between
106. The costs of carrying inventory do not include
Chapter 07 - Current Asset Management
107. For a given firm, holding other factors constant, ordering costs per unit generally
108. The economic order quantity
109. The economic order quantity
Chapter 07 - Current Asset Management
110. When using the economic order quantity model
111. Hedging
112. The amount of safety stock that a firm carries depends upon
Chapter 07 - Current Asset Management
113. A Just-In-Time (JIT) inventory management program has all but which of the following
requirements?
114. Cost savings from JIT inventory management include(s)
115. All of the following are benefits of just-in-time inventory ordering systems except
Chapter 07 - Current Asset Management
116. If average daily remittances are $6 million, and "extended disbursement float" adds 2
days to the disbursement schedule, how much should the firm be willing to pay for a cash
management system if the firm earns 7% on excess funds.
117. Price Corp. is considering selling to a group of new customers and creating new annual
sales of $90,000. 5% will be uncollectible. The collection cost on these accounts is 3% of new
sales, the cost of producing and selling is 80% of sales and the firm is in the 30% tax bracket.
What is the profit on new sales?
